Free Credit Report Provides Information About Financial Background

If you are rejected from getting a credit card or loan then a free credit report offered via email can help in reviewing the reason behind the rejection. These reports can provide information about the status and outstanding payments or financial obligation that includes charge accounts, credit card payments, car notes, home mortgage, utility bills and medical bills.

Such data is generally used by the credit bureaus to generate a credit score that is numeric from 300 to 850 score scale. Lenders and creditors use these credit reports while approving a loan process or lending a new credit card for it considers all important data relating to the financial background of an individual.

It is important to know what the lenders look for in the report in order to check the financial history and background. An individual’s credit score depends upon the things that they buy and have monthly payment plan which include houses, cars, mobiles, etc. If the credit score of any individual is low, the person does not qualify and if they do qualify their payment installments are high as compared to the person having good credit.

Free credit reports are the records that keep a track of the financial background of a person including major purchases, loans and other accounts. All major financial institutions take decisions of lending on the basis of the information found from the reports. Credit reports are stored, compiled and updated through Trans-Union, Experian and Equifax. Other financial institutions and agencies that offer such financial records but they can do that only after being an associate or affiliate of any of the above mentioned major agencies.

An individual receives his or her report through online source or local sources but the information that is contained in the reports are ultimately taken from any one of the above mentioned three agencies. Every person should keep a track of what is being reported in the credit report regularly.

Every person has the right to get a free credit report from the agency’s online website or making a request for getting a copy by phone or mail. The Fair Credit Reporting Act of the U.S. guarantees each citizen to get the free information to provide more accuracy and protection to every individual.

Companies and businesses acquire access of the report of consumers for completing the financial assistance request for purchasing home or creation of new accounts or renting an apartment or any other major financial decisions.

Employers can also request for an access of free credit report in order to hire new employees during the process of hiring. The information provided in the reports can determine whether a person is employed for a job or is getting security clearance for a particular position or receives a mortgage.